Something is not right here. Massachusetts Attorney General Martha Coakley investigated and her office found that, in addition to serving as chief executive of the state’s largest health insurer, Killingsworth also sat on the boards of 14 other companies and organizations including three that gave directors “significant compensation.”

While Coakley’s office found that Killingsworth was entitled to the money under his contract, the attorney general said “customers should not have to foot the bill for such an exorbitant severance plan.”

Critics of Killingsworth’s haul said his severance package was an insult to policyholders at a time when Blue Cross and Blue Shield and other insurers are raising premiums by double-digits. We agree.

As a result of the investigation, Blue Cross said it will refund $4.2 million to customers, an amount equal to the severance portion of Killingsworth’s pay package. Killingsworth gets to keep his $4.2 million, however – and the $4.2 million rebate will work out to less than $1.50 per member.While it’s a pittance, we’re pleased that Blue Cross Blue Shield sees the problem here.

We hope that Coakley’s report will put other health insurers and providers on notice that overpaying CEOs when policyholders are struggling to pay premiums is very bad for business.